ITU TELECOMMUNICATION INDICATORS UPDATE
APRIL - MAY - JUNE 2000
COUNTRY PROFILE: UGANDA
The Republic of Uganda, covering an
area of 235 885 km, is an agricultural
country with a population of about 22
million. Over 85 per cent of its citizens
live in rural areas; the capital Kampala
has almost 900 000 inhabitants but accounts for just 4 per cent of the country's
population. Although land-locked,
Uganda is in the Great Lakes region of
eastern Africa with some 15 per cent of
its area consisting of water. A significant
portion of Lake Victoria, the largest fresh
water lake in Africa and source of the
river Nile, is found in Uganda territory.
REFORMED, PRIVATIZED AND
LIBERALIZED
Uganda's Gross Domestic Product
(GDP) per capita is less than USD 300,
making it a least developed country. It
has historically had one of the lowest
levels of telephone penetration in the
world. However, government initiatives
to boost the economy through
privatization and foreign investment are
starting to pay off. Nowhere is this more
evident than the telecommunications
sector, which is now one of the most
liberal in Africa. Steps taken over the
last five years to foster growth in telecommunications include:
• Licensing of a private GSM mobile
operator, CelTel, in May 1995
• Creation of a regulator, the Uganda
Communication Commission, in 1998
• Introduction of a second national
operator, MTN Uganda, in October
1998
• Partial privatization of incumbent telecommunication operator, Uganda
Telecom Limited (UTL), in February
2000.
by mobile cellular and some 40 towns
have service. What is remarkable is that
the number of mobile subscribers widely
exceeds earlier forecasts of a potential
mobile market of some 10 000! The
planned entry of UTL into the mobile
market should further spur growth with
some estimates putting the potential
mobile client base at half a million.
INTERNET CASE STUDY
vice licence allows it to offer all telecommunication services including fixed
telephony, it has focused on mobile. One
reason is that wireless networks are quick
to install. Another is the use of prepaid
cards since most Ugandans would not
meet the financial criteria for a subscription-based service.
In a little over one year, MTN emerged
as the largest network operator in
Uganda surpassing not only CelTel but
also the incumbent, UTL, in terms of
number of clients. In July 1999, Uganda
became the first African country and only
one of a dozen in the world where there
were more mobile than fixed telephone
customers. MTN has not rested on its
laurels. It has been aggressive in expanding the network into what Ugandans refer to as "up-country", that is the
rural part of the nation. Over 50 per
cent of the population is now covered
Uganda is one of the countries participating in the ITU Internet Case Studies
through its Ministry of Works, Transport
and Communications. For more information on the case studies, please visit
the website at www.itu.int/ti/casestudies.
TELEPHONE SUBSCRIBERS, UGANDA (000s)
150
0.8
Years ending 31 December
100
0.6
0.4
50
MOBILE MANIA
The results of these changes have been
dramatic. Uganda's overall telephone
density tripled between 1995 and 1999
rising from 0.21 telephone subscribers
per 100 people to 0.67. This rapid
growth is a direct result of MTN's entry
into the market. Although MTN full ser-
The Internet market is also liberalized in
Uganda. There is no limit on the number of Internet Service Provider (ISP) licences. Furthermore, ISPs can provide
their own national and international infrastructure. Eight ISP licences had been
issued as of February 2000. There are
some 4000 Internet subscribers and an
estimated 25 000 users in the country.
Demand is high as evidenced by an
explosion of cybercafés in Kampala over
the last year. There is considerable scope
to expand Internet usage in the country
since almost all users are currently in
Kampala. Furthermore, ISP charges of
USD 50 a month for unlimited access
are relatively high compared to income
especially considering that telephone
usage charges must be added to this.
0
0.2
1995
1996
1997
1998
1999
Mobile
2
4
7
26
87
Fixed
39
46
54
57
59
Penetration
0.21
0.25
0.29
0.39
0.68
0
Source: ITU, 2000.
For more information or comments on the UPDATE, please contact: ITU/BDT, Telecommunication Data and Statistics, Place des Nations, CH1211, Geneva 20 (Switzerland). Tel.: +41 22 730 6090. Fax: +41 22 730 6449. E-mail: indicators@itu.int
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